DEFINITION of 'Defect Of Record'
A public record outlining any encumbrance on a piece of property, such as a lien, mortgage or easement. An encumbrance refers to a claim or restriction on a certain property that can prevent the transfer of the title.
BREAKING DOWN 'Defect Of Record'
Because the defect of record is available to the public, potential homeowners should check to see if the property they are looking has any outstanding debt or legal claims on it. A homeowner may also want to view the defect of record to see if it is clear, especially if the homeowner wants to place the property on the market.